Dutch paints and coatings maker Akzo Nobel on Thursday confirmed its 1.4 billion-euro ($1.7 billion) offer for Finland’s Tikkurila, after beating a U.S. rival’s offer last week.
The Dulux paint maker stuck to the 31.25 euro per share non-binding proposal it made last week, topping Pittsburgh-based PPG’s earlier offer by 13%.
Tikkurila responded by saying it will consider Akzo’s offer.
In a statement, Akzo said that “clear synergies would be created from collective procurement capabilities, expanded production, and combined sales and distribution channels.”
Analysts have questioned the timing of Akzo’s offer, saying it could be caught in a bidding war.
“We think Akzo is the natural acquirer given the business overlap with Tikkurila and should be able to pay a higher price than PPG due to higher potential synergies,” said Morningstar analyst Rob Hales, adding it would probably come down to how badly PPG wants the deal.
The Amsterdam-based firm, which said it does not currently hold any shares in the company, would expect to complete the deal this year.
Source: Reuters.com